Asked by David Tovar on Jun 11, 2024
Verified
Economic plausibility is one of the criteria used to evaluate a particular regression line.
Economic Plausibility
The degree to which economic theories or assumptions are realistic and make sense in real-world conditions.
Regression Line
A statistical tool used to describe the relationship between two variables, predicting the value of a dependent variable based on the value of an independent variable.
- Comprehend the importance of the coefficient of determination within regression analysis.
Verified Answer
SM
Shane MaloneyJun 14, 2024
Final Answer :
True
Explanation :
Economic plausibility is one of the important criteria used to evaluate a particular regression line. If the regression line is not economically plausible, it may not be a good model to explain the relationship between variables.
Learning Objectives
- Comprehend the importance of the coefficient of determination within regression analysis.